811.114 Canada/5071½

Memorandum by the Under Secretary of State (Phillips)

I read to Mr. Hume Wrong over the telephone and later sent him a copy of the accompanying message,27 which is based on the Acting [Page 810] Secretary of the Treasury’s letter to the Secretary of State of today’s date.

Mr. Wrong expressed himself as highly disappointed at the reply; he said it got nowhere and he himself could not recommend that the representatives of the companies come to Washington for such a conference: he described the message as another threat of impending legislation unless the Canadians did precisely what the Treasury desired. I took exception to this remark and recounted my many efforts with Senator King with a view to delay; I told him of my conversation with Senator King yesterday, which had special reference to the Canadian Government’s last memorandum, that Senator King had told me, in view of the many delays already, that he could not himself take responsibility for further postponement, but that he would consult his colleagues; two hours later he called me back after such consultation and said that further postponement would be granted; at the same time he requested me to hasten the proceedings with the Canadians as much as possible in order to avoid any further protracted postponement.

Mr. Wrong, however, seemed highly dissatisfied with the Treasury reply and again expressed his doubts whether the meeting contemplated would be worth while under the conditions laid down by the Treasury.

William Phillips
  1. Not printed.